Aging baby-boomers, predisposed to hearing loss because of years of listening to loud music, are now approaching the age range in which hearing loss starts to become apparent. What effect does this have on investment spending within the hearing aid industry?
A. The investment function relating planned real investment spending to the interest rate can be expected to shift leftward.
B. There will no longer be an opportunity cost associated with investment spending.
C. The investment function relating planned real investment spending to the interest rate can be expected to shift rightward.
D. There will be no change in real investment spending, because hearing aid manufacturers will look only at the interest rate in determining whether to expand production.
Answer: C
You might also like to view...
The figure above shows a nation's production possibilities frontier for apples and oranges
a) What combination of goods is represented by point A? b) What combination of goods is represented by point B? c) Which point represents an unattainable combination of goods?
Answer the following statements true (T) or false (F)
1. A stable economy results whenever planned injections equals planned leakages. 2. The production of goods and services generates income. 3. Spending on capital goods is referred to as investment. 4. Planned investment may differ from actual investment. 5. Accumulation and depletion of inventories affect the circular flow of income.
In an environment of tournament pay, it is quite likely that marginally more productive employees will receive
a. less than their marginal revenue product, while less productive employees receive more than theirs. b. more than their marginal revenue product, while less productive employees receive less than theirs. c. more than their marginal revenue product, as do less productive employees. d. less than their marginal revenue product, as do less productive employees.
Answer the following statement(s) true (T) or false (F)
1. Multimillionaires do not experience scarcity because they can afford all the goods and services they desire. 2. Economists consider the concept of need difficult to define because it is hard to compare “needs” among people. 3. “Average cost” is another name for “marginal cost.” 4. Economists assume that people make the best choice they can because they do not want to make themselves worse off.